Pub operator Urban & Country Leisure (UCL) is to exit destination country pubs and focus only on higher footfall locations as well as the expansion of its Lazy Cow boutique hotel brand.
The move, which forms part of the company's strategic review of its estate for 2012, will see UCL dispose of two out of nine units from its estate initially. It said it would affect pubs where landlords have increased rent or become inflexible on lease arrangements.
The first site will be the Huff Cap in Warwickshire, where UCL will sell the lease back to the landlord after taking over the former derelict pub 18 months ago and spending £850,000 refurbishing it. UCL said that despite being profitable, the site had struggled with a massive, above market value rent increase, which made its future unsustainable.
"We really did not want to leave the Huff Cap, but the economics did not add up with the current climate, the marginal profits and rent increase, which was disproportionate," said owner Ross Sanders.
UCL recently sold one of its key London sites, the Marylebone Cocktail bar on Marylebone High Street in Central London, for a sum in excess of £625,000, making it one of the highest paid premiums for a tied lease in Central London this year.
Meanwhile UCL said it will continue with its expansion plans on its Lazy Cow boutique hotel and restaurant concept, which currently has two properties in Warwick and Salisbury. Negotiations are currently under way for a third site in the West Midlands, which will open in the first quarter of 2012, while sites in Bath, Cheltenham, Cheshire and Bristol are currently being reviewed.
Sanders added: "The success of the Lazy Cow brand is focused on the fact that we have an exceptional product, quality offering and strong location. We are striving to establish TLC as a chain of intimate, stylish boutique hotels with a strong accent on unique, quality accommodation, stylish interiors and exceptional food and drink offerings. Location has also been a key factor in the success."
